India will pursue a comprehensive economic partnership agreement with Sri Lanka's new government amid plans for an aid package to rebuild the island's embattled regions, a top envoy said Thursday.
The Indian High Commissioner (ambassador) here, Nirupam Sen, said talks initiated with the previous government on the economic agreement would continue with the new administration that came to power after last month's election.
He said New Delhi was keen to push ahead with greater economic co-operation between the two countries and noted that a 150 million dollar Indian credit line had been well utilised to import commodities and merchandise.
New Delhi was also ready to put together a package of aid and grants to help rebuild Sri Lanka's embattled north-east region, Sen told reporters here after gifting a mobile library to a Ramakrishna mission in the island's north.
He said India would await a proposal from the new government here to work out the package.
"We understand that the rehabilitation of the north-east is a priority for the government here," Sen said. "We are ready to put together a package that will include both grants and aid."
Sri Lanka's former prime minister Ranil Wickremesinghe initiated talks on a comprehensive economic partnership agreement to upgrade the free trace pact between the two South Asian neighbours when he visited New Delhi in October.
The balance of trade which favoured India 15 to one when the free trade agreement was signed in 1998 has come down to five to one, according to the central bank here.
Bilateral trade reached a billion dollars in 2002 with Indian exports amounting to 831 million dollars, up from 604 million dollars in 2001.
Sri Lanka's exports to India rose more dramatically to hit 167.7 million dollars in 2002, up from 70.8 million dollars in 2001.
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